Transaction Increases Revenue, Margins and North American Presence
Toronto, ON – Siyata Mobile Inc. (TSX-V:SIM / PINK:SIMFF) (the “Company” or “Siyata”) is pleased to announce that it has closed its previously announced acquisition of Signifi Mobile Inc. (“Signifi”).
Signifi is a Montreal-based company that manufactures, markets, and sells Uniden® cellular signal boosters and accessories across Canada and the United States. Signifi’s current sales come predominantly from Canada, while USA sales are growing and present a very large scale opportunity. The demand for cellular boosters in businesses, homes, and vehicles demonstrates huge market opportunity due to the volume of users that experience weak or inconsistent cell phone coverage.
Signifi sells to cellular dealers across Canada that specialize in providing solutions to consumers and corporations in remote areas looking for better coverage; quite often Signifi sells to the same end users as Siyata, including RCMP and government offices. With a reciprocal portfolio of products, Signifi brings an established North American component to Siyata’s growth strategy.
Effective on the closing of the acquisition, the Company will be moving its head office to Montreal.
Siyata CEO Marc Seelenfreund states, “We are extremely excited to finalize our acquisition of Signifi. With their comprehensive portfolio of innovative cellular boosters marketed under the Uniden® brand, Signifi’s business is highly complementary to ours and will allow us to grow our combined sales rapidly in North America. We also look forward to establishing our corporate headquarters in Montreal as we have a strong team in place there and this is an excellent location to attract talent for development and sales of our innovative technology.”
Pursuant to the terms of the Purchase Agreement, the Company paid the principals of Signifi (the “Selling Shareholders”) $200,000 and issued 1,402,612 common shares of Siyata (each, a “Siyata Share”). An additional $150,000 cash is payable to the Selling Shareholders on the first anniversary of the closing date. The Company has agreed to issue up to an additional 1,000,000 Siyata Shares to the Selling Shareholders on the first, second and third anniversaries of closing. The Selling Shareholders may elect to receive up to $450,000 of such consideration in cash. Up to an additional $125,000 in cash and up to an additional 1,400,000 Siyata Shares are issuable to the Selling Shareholders if Signifi meets certain annual revenue and gross profit targets as described in the Purchase Agreement.
All securities issued in connection with the acquisition are subject to a hold period expiring October 8, 2016.
Siyata Mobile Inc. is a leading global developer and provider of a vehicle-mounted communications platform over advanced mobile networks. Siyata’s customers include cellular operators, commercial vehicle technology distributors, and fleets of all sizes in Canada, the US, Europe, Australia, and the Middle East.
Siyata’s “Connected-Vehicle” devices and accessories are specifically designed for professional fleets such as trucks, vans, buses, ambulances, government cars and more. Siyata aims to provide greater mobile connectivity for professional drivers and facilitate replacement of the current in-vehicle, multi device status quo with a single device that incorporates voice, data, and fleet management solutions. Visit www.siyatamobile.com to learn more.
On Behalf of the Board of Directors of:
SIYATA MOBILE INC.
CEO and Director
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This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.